Forex Courses - Learn Proven Strategies Risk Free and Get on the Road to Bigger Forex Profits
The Bollinger Bands are also very useful at determining entries and exits to trades. The upper and lower bands are the profit targets for long and short trades, respectively. This way we can exit trades even if there is no support or resistance levels nearby. Note that this strategy is useful mainly in periods of range, and in trends- go with the trend and do not exit quickly.
Most amateur traders ask for forecasts, while professionals simply manage information and make decisions based on probabilities. Take medicine, for example. A patient is brought to an emergency room with a knife sticking out of his chest - and the anxious family members have only 2 questions: "Will he survive?" and "When can he go home?" They ask the doctor for a forecast.But the doctor is not forecasting. He is taking care of problems as they emerge. His FIRST job is to prevent the patient from dying from shock, and so he gives him pain-killers and starts an intravenous drop to replace lost blood. Then he removes the knife and sutures damaged organs.
After that, he has to watch against infection. He monitors the trend of a patient's health and takes measures to prevent complications. He is managing - NOT forecasting. When a family begs for a forecast, he may give it to them, but its PRACTICAL VALUE IS LOW.To make money trading, you do not need to forecast the future. You have to extract information from the market and find out whether bulls or bears are in control. You need to measure the strength of the dominant market group and decide how likely the current trend is to continue.
You need to practice conservative money management aimed at long-term survival and profit accumulation. You must observe how your mind works and avoid slipping into greed or fear. A trader who does all of this will succeed more than any forecaster.
Most amateur traders ask for forecasts, while professionals simply manage information and make decisions based on probabilities. Take medicine, for example. A patient is brought to an emergency room with a knife sticking out of his chest - and the anxious family members have only 2 questions: "Will he survive?" and "When can he go home?" They ask the doctor for a forecast.But the doctor is not forecasting. He is taking care of problems as they emerge. His FIRST job is to prevent the patient from dying from shock, and so he gives him pain-killers and starts an intravenous drop to replace lost blood. Then he removes the knife and sutures damaged organs.
After that, he has to watch against infection. He monitors the trend of a patient's health and takes measures to prevent complications. He is managing - NOT forecasting. When a family begs for a forecast, he may give it to them, but its PRACTICAL VALUE IS LOW.To make money trading, you do not need to forecast the future. You have to extract information from the market and find out whether bulls or bears are in control. You need to measure the strength of the dominant market group and decide how likely the current trend is to continue.
You need to practice conservative money management aimed at long-term survival and profit accumulation. You must observe how your mind works and avoid slipping into greed or fear. A trader who does all of this will succeed more than any forecaster.
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